What would you like to happen in your business in 2023? Whatever it is don’t expect it to happen by doing the same things you did in 2022. One of the biggest challenges is not starting as a solo entrepreneur but growing the business and adding people.
Michael Gerber, in his book “The E Myth Revisited”, discusses the reasons why some people fail. Some businesses may survive due to external dynamics and timing, but they will become stagnant, and the owner will feel like a hamster on a wheel. This is because there is a lack of entrepreneurial leadership.
Let’s take an example. How many restaurants were not able to withstand the challenges of the pandemic? A great cook or chef feels that because he or she understands how to create a great meal he or she would run a great restaurant. Soon after opening, the owner is usually consumed with running the business and involved in every little detail. When this crisis came the owner had to rethink, look at the big picture and make a strategic move. In our restaurant example, unless you have a food stand, you need other people. You need organization and you need leadership. If you are a great cook and this is your passion, you might be better served to work for great restaurant as the executive chef.
Likewise, if you want to build a real estate agency you will need to provide leadership and development to your team. You cannot expect new agents to hang their shingles with you and say you have an organization.
More needs to be done. Michael Gerber highlights some key points in his book. I have found that the enterprises that I have coached and consulted have had success when they have followed the following points.
1. You need a vision for your business. Moreover, you need to keep your eye on the vision. How do you look when you are successful? What is the future of your business five to ten years from now rather than what you are doing today?
2. Who are your customers now and in the future? What is your unique value proposition; what sets you apart from your competition? How do you get customers?
3. How does the business work rather than the work done by the business? What processes and procedures are in place to facilitate the smooth operation of the business when the owner is not present?
4. How does this business generate profits rather than how does the business make sales?
5. How is the business structured to meet the needs of the customers? How does the business build loyal customers?
6. How are the best people hired, motivated, and retained? Pay attention to this one. Things have changed in the last years.
7. Can this business continue to grow and duplicate? In other words, is this a sustainable business?
The real secret behind all of this is not simply having a business plan although you certainly do need a business plan. The real secret is learning how to become an entrepreneurial leader. Leadership is paramount to you personally and to your team. As an entrepreneurial leader you will look at the forest instead of the trees, you will work ON your business rather than IN your business, and you will become the inspiration for your business. For a similar post on our website see BECOME AN ENTREPRENEURIAL LEADER IN 2023.
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